{"id":11780,"date":"2023-03-13T12:06:45","date_gmt":"2023-03-13T12:06:45","guid":{"rendered":"https:\/\/grupodeproinf.com\/?p=11780"},"modified":"2023-03-13T12:06:45","modified_gmt":"2023-03-13T12:06:45","slug":"why-us-companies-are-using-offshore-software-development-companies","status":"publish","type":"post","link":"https:\/\/grupodeproinf.com\/?p=11780","title":{"rendered":"Why US companies are using offshore software development companies?"},"content":{"rendered":"<p>Outsourcing software development is an option that many companies have used for many years. With he growing shortage of developers and the rise of salaries in the US, <a href=\"https:\/\/www.britannica.com\/money\/offshoring\">offshore<\/a> software development has become a trend. In this article I will explore the reasons for outsourcing outside the US and an analysis of the areas where you could outsource.<\/p>\n<h2>Why outsource your developments?<\/h2>\n<p>In \u201c<a href=\"https:\/\/grupodeproinf.com\/2023\/01\/30\/why-outsource-your-software-development\/\">Why outsource your software development?<\/a>\u201d we explained the reasons why the outsourcing of software developments is growing. The main reasons are:<\/p>\n<ul>\n<li>Cost reduction<\/li>\n<li>Development time reduction<\/li>\n<li>Increase development flexibility<\/li>\n<li>To keep focus in the core business<\/li>\n<\/ul>\n<h2>Why offshore software development?<\/h2>\n<p>There are two main triggers why US companies are outsourcing their software development and support to offshore companies.<\/p>\n<ol>\n<li><strong>Deficit of qualified developers<\/strong>: According to a study of <a href=\"https:\/\/www.idc.com\/getdoc.jsp?containerId=US48223621\">IDC<\/a>, a leading market intelligence firm, the shortage of developers will increase from 1.4 million in 2021 to 4.0 million in 2025; and he latest US labor statistics found that the number of graduates is only 400K a year which is way shorter than the demand. That is not the case in many countries.<\/li>\n<li><strong>Cost reduction<\/strong>: It is a simple matter of supply-demand. As long as the developer deficit is maintained, salaries will continue to rise. This does not happen in many countries.<\/li>\n<\/ol>\n<p>The main counterargument against offshore software development is the potential loss of control of a key activity. But one of the things the pandemic proved was the capability to work remotely as efficiently as on site.<\/p>\n<h2>What are the offshore software development options?<\/h2>\n<p>The main factors that you need to consider when determining the best country to outsource your software development are: costs, IT infrastructure, educational infrastructure, the ability to communicate in your preferred language, and their availability during your work time.<\/p>\n<p>There are several offshore software development options as indicated in the map below, but the most popular are:<\/p>\n<ul>\n<li>Eastern Europe (Poland, Ukraine, Romania)<\/li>\n<li>Asia (China, India, Philippines, Vietnam, Singapore)\u00b4<\/li>\n<li>South America (Argentina, Chile, Colombia, Venezuela)<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-11782\" src=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Map-300x144.jpg\" alt=\"offshore software development zones\" width=\"477\" height=\"229\" srcset=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Map-300x144.jpg 300w, https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Map-1024x493.jpg 1024w, https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Map-768x370.jpg 768w, https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Map-1536x739.jpg 1536w, https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Map.jpg 1920w\" sizes=\"(max-width: 477px) 100vw, 477px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>The table below compares the main features of each area. The percentage of English proficiency is referred as the total population. The English proficiency for developers is high in all zones.<\/p>\n<div id=\"attachment_11786\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-11786\" class=\" wp-image-11786\" src=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Table-world-1-300x47.jpg\" alt=\"offshore software development region\" width=\"600\" height=\"94\" srcset=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Table-world-1-300x47.jpg 300w, https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Table-world-1.jpg 618w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-11786\" class=\"wp-caption-text\">Offshore software development Regions<\/p><\/div>\n<p>Asia has been the traditional choice for outsourcing due to the larger pool of developers. However, a large portion of the pool does not have formal education, which results in a wide variance in the quality of the developers. This fact plus the time difference and the quality of the language proficiency has led companies to look for alternatives.<\/p>\n<p>Eastern Europe outsourcing has taken that opportunity to grow his share of the market. But the hourly rates and the time difference discourage many companies to consider them as an alternative.<\/p>\n<p>South America countries, on the other hand, have fairly low rates, an excellent formal talent pool, very good IT structure and educational structure, cultural affinity, language proficiency, and little time difference. For this reason this zone has become very popular when selecting where to outsource software development. I will expand on this in a future article.<\/p>\n<h2>South America development options<\/h2>\n<p>All countries in South America have software development offers, but the countries with higher demand in 2022 were Argentina, Colombia, Chile and Venezuela. The table below compares these four countries.<\/p>\n<div id=\"attachment_11787\" style=\"width: 534px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-11787\" class=\"wp-image-11787\" src=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Table-SA-300x99.jpg\" alt=\"Software development South America\" width=\"524\" height=\"173\" srcset=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Table-SA-300x99.jpg 300w, https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/03\/Table-SA.jpg 468w\" sizes=\"(max-width: 524px) 100vw, 524px\" \/><p id=\"caption-attachment-11787\" class=\"wp-caption-text\">Software development South America<\/p><\/div>\n<h2>What can Deproinf do for your developments?<\/h2>\n<p>We count with an extensive pool of university graduate developers and project managers to oversee the developments. Our rates are the best of the market and we work on an agile methodology. If you are looking for an offshore software company or are not satisfied with the one you have, give us a call.<\/p>\n<p>I hope this article has been helpful to you. If you liked it or want to learn more about Deproinf, please subscribe to stay updated on future articles and follow us in Instagram.<\/p>\n<a href=\"https:\/\/grupodeproinf.com\/\" target=\"_self\"  class=\"mkd-btn mkd-btn-medium mkd-btn-solid mkd-btn-hover-outline\"  >\n\t<span class=\"mkd-btn-text\">subscribe to Deproinf blog<\/span>\n\t\t\n\t\t\t<span class=\"mkd-btn-helper\" ><\/span>\n\t<\/a>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-11739\" src=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/01\/Facebook.jpg\" alt=\"\" width=\"46\" height=\"42\" \/><\/p>\n<p><a href=\"https:\/\/twitter.com\/grupodeproinf?lang=es\"><img decoding=\"async\" class=\"alignnone size-full wp-image-11741\" src=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/01\/Twiter.jpg\" alt=\"\" width=\"46\" height=\"42\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.instagram.com\/grupodeproinf\/?hl=es\"><img decoding=\"async\" class=\"alignnone size-full wp-image-11742\" src=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/01\/Instagram.jpg\" alt=\"\" width=\"46\" height=\"42\" \/><\/a><\/p>\n<p><a href=\"https:\/\/ve.linkedin.com\/company\/grupodeproinf\"><img decoding=\"async\" class=\"alignnone size-full wp-image-11743\" src=\"https:\/\/grupodeproinf.com\/wp-content\/uploads\/2023\/01\/linkedin.jpg\" alt=\"\" width=\"46\" height=\"42\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Outsourcing software development is an option that many companies have used for many years. With he growing shortage of developers and the rise of salaries in the US, offshore software development has become a trend. In this article I will explore the reasons for outsourcing&#8230;<\/p>\n","protected":false},"author":4,"featured_media":11789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_joinchat":[],"footnotes":""},"categories":[459],"tags":[],"class_list":["post-11780","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why US companies are using offshore software development companies? - Grupo Deproinf<\/title>\n<meta name=\"description\" content=\"The growing shortage of developers and the rise of salaries in the US, offshore software development has become a trend. 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